Hyperscale Computing Market

Global Hyperscale Computing Market Research Report: By Component (Solution, Service), By Enterprise Size (Large Enterprises and Small & Medium Enterprises), By Application (Cloud Computing, Big Data, IoT, and Others), By End-use (BFSI, Healthcare, IT & Telecom, Media & Entertainment, Retail & E-commerce, and Others), and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2023-2031.

ICT & Media | September 2023 | Report ID: EMR00168 | Pages: 217

The Global Hyperscale Computing Market was valued at USD 35.20 billion in 2022 and is estimated to reach approximately USD 175.25 billion by 2031, at a CAGR of 19.5% from 2023 to 2031. A form of computer architecture known as hyperscale computing. It is developed to manage and scale with highly massive workloads and data volumes. It is characterized by its capacity to increase its computer resources quickly and effectively in order to satisfy the demands for different applications and services. Data centers, cloud computing, and internet services that demand a lot of processing and storage capacity are all examples of hyperscale computing. Hyperscale computing heavily depends on virtualization technologies like virtual machines and containerization. They allow effective resource management and workload segregation. Large workloads and amounts of data are supported by hyperscale computing platforms. When necessary, they can smoothly scale up or down to meet changing user demand with minimal disruption. The popularity of cloud computing is accelerating, which is fueling market expansion. Additionally, there is tremendous development potential due to the increasing use of big data, machine learning, IoT, and artificial intelligence.

 

 

HYPERSCALE COMPUTING MARKET: REPORT SCOPE & SEGMENTATION

Report Attribute

Details

Estimated Market Value (2023)

35.20 Bn

Projected Market Value (2031)

175.25 Bn

Base Year

2022

Forecast Years

2023 - 2031

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Component, By Enterprise Size, By Application, By End-Use, & Region

Segments Covered

By Component, By Enterprise Size, By Application, By End-Use, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2023 to 2031

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Hyperscale Computing Market Dynamics

The adoption of cloud computing by enterprises from a variety of industries as a part of their digital transformation projects rapidly growing. There has been an enormous rise in the demand for hyperscale computing infrastructure, due to the scalability, cost-efficiency, and flexibility provided by hyperscale cloud providers. Several companies have taken on hybrid and multi-cloud strategies, combining hyperscale resources with on-premises infrastructure or services from various cloud providers.

 

Global Hyperscale Computing Market Drivers

  • Adoption of Cloud Computing and Digital Transformation

Cloud computing is becoming more and more popular among businesses as a way to increase flexibility and scalability. Platforms for hyperscale computing offer the infrastructure needed to deliver cloud services at an enormous scale. Businesses from many sectors are implementing digital transformation strategies to streamline processes, enhance consumer interactions, and take advantage of data-driven insights. These activities are aided by hyperscale computing, which offers the processing power required for sophisticated analytics and Artificial Intelligence based operations. Furthermore, Hyperscale computing accelerates the development and deployment of Artificial Intelligence models by offering vast computing power.

 

  • High Performance and Flexibility for Modern Workloads

Modern workloads, such as AI, ML, and data-intensive applications, require significant computing power and resources. Hyperscale computing platforms are designed to meet these demands by providing high-performance computing capabilities. These platforms can rapidly provision resources, scale up or down based on workload requirements and deliver optimized performance for complex tasks. As organizations strive to gain competitive advantages through innovation and data-driven decision-making, they are increasingly turning to hyperscale solutions to support the performance and flexibility needed for these workloads. The ability to quickly adapt to changing business needs and efficiently process demanding workloads is a compelling driver behind the adoption of hyperscale computing.

 

Restraints:

  • Data Privacy and Security

Hyperscale data centers store and process vast amounts of sensitive data, making security and compliance top priorities. Organizations must ensure the protection of customer data, intellectual property, and other confidential information. However, the scale and complexity of hyperscale environments can pose challenges for maintaining robust security measures and adhering to industry-specific regulations. Security breaches, data leaks, or non-compliance with data protection laws can lead to severe financial and reputational damages. These concerns can lead to hesitation among businesses considering hyperscale adoption, particularly those operating in heavily regulated industries, and can slow down the market's expansion.

 

  • Environmental Impact and Sustainability Considerations

The energy consumption of hyperscale data centers is a growing concern, given their large-scale operations and power-hungry infrastructure. The environmental impact of these facilities, including carbon emissions and energy consumption, has drawn attention from both regulatory bodies and the public. Pressure to reduce the carbon footprint and adopt more sustainable practices can affect the growth of the hyperscale computing market. Organizations are increasingly seeking energy-efficient solutions, renewable energy sources, and strategies to minimize the environmental impact of their data center operations. Compliance with environmental regulations and addressing sustainability concerns may add complexities and costs that restrain the widespread adoption of hyperscale computing.

 

Opportunities:

  • Combining Edge Computing with Hyperscale Architecture

The rise of edge computing, driven by the proliferation of IoT devices and the need for real-time data processing, creates new opportunities in the hyperscale computing market. Edge computing involves processing data closer to the source, reducing latency and enabling faster decision-making. Hyperscale computing providers can capitalize on this trend by offering edge-focused solutions, such as edge data centers and edge-friendly hardware configurations. Developing edge-to-core architectures that seamlessly integrate with hyperscale infrastructure can address the unique challenges of edge computing, including limited resources and connectivity issues. The expansion into edge computing aligns well with the capabilities of hyperscale providers and opens doors to new revenue streams and market segments.

 

  • Global Expansion and Market Penetration

As organizations all over the world progressively adopt cloud-based services and digital transformation projects, so it helps to the hyperscale computing market to grow in upcoming years. There are several chances for hyperscale providers to access underserved markets and new geographical areas. Hyperscale companies can be able to respond to particular market needs and preferences thanks to regional alliances, localized data centers, and compliance with local data protection laws. Providers could grab a bigger piece of the burgeoning market for hyperscale computing services by carefully increasing their presence and tailoring their solutions to diverse areas, which will increase revenue and market penetration.

 

Segment Overview

By Component

Based on the component segment, the global hyperscale computing market is divided into solution and service. The solution segment dominates the global hyperscale computing market with a major revenue share of around 78.3% in 2022. In the perspective of hyperscale computing, the numerous components, building blocks, and technologies that join together to form an all-encompassing hyperscale computing environment are referred to as solution components.

 

By Enterprise Size

Based on the enterprise size segment, the global hyperscale computing market is categorized into large enterprises and small & medium enterprises. The large enterprises segment leads the global hyperscale computing market with the largest revenue share of around 70.2% in 2022. Large organizations have access to a strong tool for managing an active business through the use of well-designed apps and an effective hyperscale architecture, giving them a competitive advantage. Also, to improve business operations, small and medium-sized businesses are rapidly adopting hyperscale innovations including software-defined networking (SDN), micro-segmentation, and converged infrastructure.

 

By Application

Based on the application segment, the global hyperscale computing market is segmented into cloud computing, big data, IoT, and others. In the global hyperscale computing market, the cloud computing segment dominates with the largest revenue share of around 30.9% in 2022. They provide many different cloud services, such as computing, storage, databases, AI, machine learning, analytics, and others. They are able to provide enterprises with scalable, dependable, and adaptable cloud solutions. IoT is the second-largest market segment in hyperscale computing market. Where, consumers are increasingly adopting IoT gadgets like connected appliances, wearable fitness trackers, and smart home items.

 

By End-use

Based on the end-use segment, the global hyperscale computing market is divided into BFSI, healthcare, IT & telecom, media & entertainment, retail & e-commerce, and others. The IT & telecom segment leads the market with the highest revenue share of around 23.1% in 2022. Due to its advantages, such as streamlined management, reduced downtime, increased operational efficiency, easier data backups, and scalability, IT and telecom firms are widely utilizing hyperscale computing. Growing demand for digital transformation services and greater use of cloud-native platforms are the two main factors driving this segment's market expansion.

 

Global Hyperscale Computing Market Overview by Region

The global hyperscale computing market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. North America emerged as the leading region, capturing approximately 32.2% of the market share in 2022. The expansion of end-use industries such as media & entertainment, retail & e-commerce, IT & telecom, BFSI, and healthcare, among others, is responsible for the market growth in the area. Technology improvements in data center technology, virtualization, networking, and software have all been made in the United States. This breakthrough has helped hyperscale computer architectures become more flexible and scalable. Also, The legislative climate in North America generally encourages technological advancement and the expansion of cloud-based services, fostering an atmosphere that is favorable for hyperscale computing.

 

 

Global Hyperscale Computing Market Competitive Landscape

In the global hyperscale computing market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

 

Some of the prominent players in the global battery management system market include Amazon Web Services, Inc., Hewlett Packard Enterprise Development LP, Salesforce Intel Corporation; Microsoft Corporation, IBM Corporation, Google Cloud, Tencent Cloud, Oracle Corporation, Dell Inc., Alibaba Cloud Server Technology, Inc., DigitalOcean, VIAVI Solutions Inc., and various other key players.

 

Global Hyperscale Computing Market Recent Developments

In February 2023, Microsoft announced Serverless Hyperscale in Azure SQL Database. According to company, Azure SQL Database is Serverless for Hyperscale and combines the advantages of serverless and hyperscale into a single database solution. Now, databases' compute and storage requirements are scaled automatically.

 

In March 2023, NVIDIA Chooses Oracle Cloud Infrastructure for AI Services. Oracle has extended its collaboration with NVIDIA to include running strategic NVIDIA AI applications on the new Oracle Cloud Infrastructure (OCI) Supercluster™. NVIDIA has selected OCI as the first hyperscale cloud provider to offer NVIDIA DGX Cloud™, an AI supercomputing service, at massive scale.

 

Scope of the Global Hyperscale Computing Market Report

Global Hyperscale Computing Market Report Segmentation

ATTRIBUTE

DETAILS

By Component

  • Solution
  • Service

By Enterprise Size

  • Large Enterprises
  • Small & Medium Enterprises

By Application

  • Cloud Computing
  • Big Data
  • IoT
  • Others

By End-use

  • BFSI
  • Healthcare
  • IT & Telecom
  • Media & Entertainment
  • Retail & E-commerce
  • Others

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

 

  • Global Hyperscale Computing Market Size and Forecast:

To identify and estimate the market size for the global hyperscale computing market segmented by component, by enterprise size, by application, by end-use, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of hyperscale computing between 2019 and 2031.

 

  • Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global hyperscale computing market

 

  • Market Influencing Factors:

To find out the factors which are affecting the sales of hyperscale computing among consumers

 

  • Impact of COVID-19:

To identify and understand the various factors involved in the global hyperscale computing market affected by the pandemic

 

  • Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

 

Intended Audience

  • Government and Non-governmental Organizations
  • Investors and Financial Institutions
  • Academics and Research Institutes
  • Environmental Agencies

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

The global hyperscale computing market forecast period is 2023 - 2031
According to hyperscale computing market research, the market is expected to grow at a CAGR of ~19.5% over the coming years.
Asia-Pacific is expected to register the highest CAGR during 2023 - 2031
North America held the largest share in 2022
The major players operating in the global hyperscale computing market include Amazon Web Services, Inc., Hewlett Packard Enterprise Development LP, Salesforce Intel Corporation; Microsoft Corporation, IBM Corporation, Google Cloud, Tencent Cloud, Oracle Corporation, Dell Inc., Alibaba Cloud Server Technology, Inc., DigitalOcean, VIAVI Solutions Inc ., and various others.